This informative article includes a checklist for using
transaction databases for pricing and valuation, as well
as several instructive exhibits. In pricing and
structuring M&A transactions, it is helpful to know how
other completed M&A transactions have
been priced and structured. In recent years, databases
have become available online covering details of
thousands
of M&A transactions.
The idea behind using transaction databases is to relate
the price paid in other transactions in the industry to
the respective companies’ underlying fi nancial data.
The results of this research are called “valuation
multiples,”
which then can be applied to the target company’s
underlying fi nancial data to develop indications of
value. Pdf-file
